Applications to set aside statutory demands under s 459G of the Corporations Act 2001 bases of genuine disputes and offsetting claims & “for some other reason” pursuant to s 459J: Radiomio Pty Ltd v Kendell; SISS Business Systems Limited v Kendell [2011] VSC 511 (12 October 2011)
October 28, 2011
In Radiomio Pty Ltd v Kendell; SISS Business Systems Limited v Kendell [2011] VSC 511 Gardiner AsJ set aside statutory demands under 459J of the Act, where there is some other reason, in addition to the claim there was a genuine dispute and offsetting claim, section 459G and H.
FACTS
The Defendant, Kendell, issued three statutory demands for $28,477.04 (182 demand) and $18,694.97 (184 demand) for fees and $93,349 (953 demand) pursuant to an incentive plan.
The factual matrix is quite complex and involved (see [17] – [23]). In short compass, prior to the service of the 182 and 184 demands Kendall served unsigned statutory demands and unsigned draft affidavits. On 14 December 2010 Kendell served statutory demands claiming $54,868.94 and $46,741.10. After these demands were served a payment of $30,000 was made by the plaintiff. On 25 December 2010 Kendell wrote to the plaintiff’s solicitor confirming that he had withdrawn previous statutory demands and that he had independently reviewed his invoices, arriving at different figures. On 30 December 2010 the 182 and 184 demands were served. The plaintiff submitted that it was not safe for the Court to rely on Kendall’s affidavits because, inter alia, no explanation was given as to why the demands varied so much as to the amount demanded and that Kendall had previously sworn there was no genuine dispute as to the debt but had varied the sums demanded under subsequently sworn affidavits.
DECISION
Set aside for some other reason – Section 459J
Gardiner AsJ stated that because of the serious consequences associated with the service of statutory demands the accompanying affidavits have a real purpose in providing safeguards to the person serving the statutory demands which are potentially controversial. He quoted Four Seasons Construction v Eastern Metropolitan Council regarding the purpose of affidavits, providing:
First, the corporation is advised Read the rest of this entry »